NHPC board to consider buyback option today

STATE-run hydro power generator NHPC Ltd’s board of directors may consider a proposal for buyback of shares at a meeting today. However, the PSU has not made it clear that whether it would buyback shares from its promoter, the central government holding 74.51 per cent of the equity or other shareholders.
At “board meeting scheduled on February 7, 2017…the board of directors may also consider the proposal for buyback of the fully paid-up equity shares of the company,” NHPC Ltd said.
The PSU did not disclose the quantum of amount it is looking...
to raise through this offer and number of shares to be bought back under the said proposal to be vetted by board meeting.
“When we say shareholders, we mean all of them. They could be general shareholders and central government also. More details about the buyback proposal would be available on February 7, 2017,” a top NHPC official told news agency PTI.
Under the plan, the shares bought by the PSU are extinguished from the shareholding. Thus, the shareholding is reducing by that much number of shares and capital. Kumar remained tight lipped when asked whether it is linked with central government’s investment plans in the public sector undertakings.
Earlier, while presenting the Union Budget, Finance Minister Arun Jaitley said the government has budgeted to raise Rs 72,500 crore through disinvestment in CPSEs in 2017-18, which is higher than the Rs 45,500 crore raised in the current fiscal as per revised estimate. Fiscal 2016-17 is the seventh year in a row when the government would not be meeting the disinvestment target fixed in the Budget. As much as Rs 56,500 crore was budgeted to be raised through PSU disinvestment in 2016-17.
Earlier, in November last year, NHPC posted 27.8 per cent increase in standalone net profit to Rs 1,554.6 crore for the September quarter. It had posted net profit of Rs 1,215.6 crore in the July- September period of last fiscal. Its total income from operations increased to Rs 2,403.3 crore, over Rs 2,344.9 crore in the year-ago period.
NHPC was incorporated in 1975 with an objective to plan, promote and organise an integrated and efficient development of hydroelectric power in all aspects. Later, NHPC expanded its objects to include development of power in all its aspects through conventional and non-conventional sources in India and abroad. Government of India currently holds 74.6 percent stake in NHPC (as per the shareholding pattern as on 30 September 2016).
NHPC, the Miniratna PSU, is India's leading company in power sector and is among the top 10 companies in the country in terms of investment with an installed power generation capacity of 5,702 MW, including 1,520 MW implemented through joint ventures (JV). Seven projects with a total capacity of 4,095 MW are under construction. NHPC currently has an installed capacity of 5,147 MW at standalone and 6,717 MW on consolidated basis with a total of 22 operating power stations. 19 hydro power stations besides one wind power project are operated by NHPC while two are operated by NHDC, a subsidiary company with the Government of Madhya Pradesh. Presently NHPC is engaged in the construction of 5 projects aggregating to a total installed capacity of 4290 MW including 1000 MW (Pakal Dul HE Project) being executed through JV Company. 10 projects of 7151 MW are awaiting clearances/Govt. approval for their implementation including 3 Projects of 1186 MW to be executed through subsidiary/JV companies.